Investors are eagerly anticipating Tesla’s robotaxi event, where CEO Elon Musk will unveil the CyberCab, a long-awaited autonomous vehicle. Despite skepticism regarding Tesla’s ability to deliver this technology safely and effectively, the event is scheduled to take place at a Warner Bros. studio in Burbank, California. Analysts caution that the closed course setting could make Tesla’s robotaxi appear more advanced than it would on public roads. Despite this caution, Tesla shares have dipped and are down for the year, following the company’s announcement of third-quarter delivery numbers.
The event follows Tesla’s recent report of 462,890 deliveries in the third quarter, totaling 1.35 million deliveries for the year so far. While Tesla has faced delays and missed deadlines in the past, analysts remain optimistic about the company’s long-term growth and its potential to deliver advanced products such as autonomous vehicles and humanoid robotics. Gene Munster, a prominent Tesla bull, expects Tesla to roll out robotaxis in select cities by the end of 2025. He believes that the event could drive the stock price down temporarily, but anticipates long-term growth as deliveries increase.
Despite being once seen as a pioneer in autonomous vehicle development, Tesla is now considered a laggard in the industry. Alphabet’s Waymo and several Chinese firms already operate commercial robotaxi services. Tesla faces safety concerns with its driver assistance systems, including issues like phantom braking. The National Highway Traffic Safety Administration is investigating Tesla’s phantom braking problems, which could impact the company’s ability to deliver a level 4 robotaxi. Analysts stress the importance of Tesla solving these safety issues before moving forward with autonomous vehicle technology.
Analysts are also interested in learning more about Tesla’s plans for operating in different weather conditions and how the company plans to address liability concerns associated with autonomous vehicles. Sam Abuelsamid emphasizes the need for a profitable business model in the autonomous vehicle space, where many companies have struggled. While progress has been made on the technology front, successful deployment of robotaxis will require addressing logistical and operational challenges. Abuelsamid and other analysts will be looking for clarity on how Tesla plans to own and operate its robotaxis, which will be essential for the success of the venture.
Overall, the robotaxi event will be a critical moment for Tesla as it seeks to prove its technological capabilities and position itself as a leader in the autonomous vehicle market. Despite past setbacks and safety concerns, analysts remain cautiously optimistic about the company’s potential for growth and innovation. The unveiling of the CyberCab and Tesla’s plans for autonomous vehicles and other AI-driven products will be closely watched by investors and industry experts alike, as the company navigates the challenges of delivering safe and successful robotaxi technology.
